Inputs from Mumbai - Source: Reuters

Mangalore,  Mar 4: Oil and Natural Gas Corp. said on Saturday its board had approved an investment of 80 billion rupees to boost the capacity of Mangalore Refinery & Petrochemicals, to 15 million tonnes a year.

The expansion will be finished in three-and-a-half years, ONGC said in a statement. MRPL's refinery in Mangalore in the south has a capacity of 9.69 million tonnes of crude a year.

"This is the first of a series of major projects planned at Mangalore, and the integrated upgradation project will further improve the cost-efficiency of MRPL," ONGC chairman Subir Raha said.

The upgrade envisages production of high value products such as propylene, high quality gasolene and diesel, which are in good demand in global markets.

MRPL's annual propylene production would rise to 300,000 tonnes a year.

"With the implementation of this upgradation project, the new refinery configuration will allow processing of higher proportion of low cost sour and heavy crudes leading to better margin," ONGC said.

The project includes setting up a 250,000-tonne lube oil base stock facility to help MRPL enter the high priced lubricant oil market.